1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
Talking about NVIDIA Corporation (NASDAQ:NVDA), Cramer said:
“The stock was up 171% last year and also by the way, had a very strong close today of 4.3%. Of course, for a decent chunk of the year, there was a lot of worry about a late product and a fractured client base that wants to design its own chip because NVIDIA’s cost too much even if the return on investment’s really large here.
Believe me, if I thought anyone could touch NVIDIA’s products and platforms, I’d be happy to say, sell it and book the gain but I can’t justify that because this company’s peerless. Frankly, the biggest thing working against the stock is, well, the terrible way it trades, giving up huge clumps after making soft climbs. For any other company, I’d say abandon the stock, but NVIDIA’s products are too good, too indispensable and its CEO runs harder than anyone else I’ve ever met. I expect a great speech from Jensen Huang at CES next Monday.”
NVIDIA (NASDAQ:NVDA), a leader in graphics, computing, and networking solutions, is driving significant growth through its GPUs and the CUDA software platform, which are essential for AI infrastructure. CEO Jensen Huang’s recent keynote at CES unveiled several products, including Project DIGITS, a personal AI supercomputer, next-gen GeForce RTX 50 gaming GPUs, and the Cosmos platform for robotics and autonomous vehicles. The company also highlighted its focus on AI Blueprints for Agentic AI to automate business functions.
It is noteworthy that Analyst Dan Ives sees a $1 trillion market opportunity in robotics, potentially boosting NVIDIA’s valuation to over $4 trillion. Furthermore, the company’s Chief Financial Officer, Colette Kress, highlighted the company’s growth prospects, noting that Blackwell chip shipments are on track and the upcoming fiscal year is expected to see growth in the data center business.
Kress pointed to two key transformations driving long-term revenue growth. First, there is a $1 trillion installed base of general-purpose computing solutions that have been in use for decades, presenting significant opportunities as data and accelerated computing become more critical in data centers. Second, Kress emphasized the shift to AI solutions, where the growing use of data with AI in daily life offers substantial expansion potential. These changes, she noted, will unfold over the next decade and beyond.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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